This article was published on the ChosunBiz MoneyMove site on Aug. 1, 2025, at 2:59 p.m.
INNOSPACE, known as the 'first listed company for space launch vehicles,' withdrew its plan for a new funding round worth 20 billion won. This was the second large-scale fundraising this year, following a capital increase in March, and this time it opted for a stock-linked bond issuance method, but it reportedly faced difficulties in securing investors.
According to sources in the investment banking sector on the 4th, INNOSPACE recently suspended its plan to issue stock-linked bonds. It had established internal policies for issuing non-name-bearing, interest-bearing corporate bonds and launched a demand survey for institutional investors early last month, but chose to withdraw.
The company had planned to issue corporate bonds worth up to 20 billion won. Given the substantial costs involved in developing and commercializing space launch vehicle technology, it turned its attention to expanding national projects, but this also required significant funding, which ultimately led to efforts to secure additional investments.
According to the industry, institutional investors reportedly hesitated to participate due to concerns about potential losses. The company, which made headlines as the first domestic space launch vehicle firm to successfully conduct a suborbital launch last July and entered the KOSDAQ market, has seen its stock price steadily decline since then.
The stock of INNOSPACE, which entered the market at an initial price of 43,300 won per share, has now dropped to around 16,000 won, over a 60% decrease. Although it briefly surpassed the initial price on its first day of trading, it has remained below that price since the following day. Its market capitalization has shrunk to around 150 billion won.
The delay of INNOSPACE's small satellite launch vehicle 'Hanbit-Nano' has contributed to the decline in stock prices. Although it has positioned itself as a leading provider of launch services for small Earth observation satellites, it has not succeeded in commercial launches since its establishment in 2017.
INNOSPACE had set a goal of starting commercial launches in March of this year, generating 47.8 billion won in annual revenue, when it sought to list on the stock market last year. However, it has yet to determine a timetable for the commercial launches, having postponed the planned launch date from July earlier this year to 'later in the second half.'
The decline in trust in the capital market has also negatively impacted investor sentiment. This is because the company sought funding again just four months after conducting a 30.6 billion won third-party allocation of new shares.
A securities industry official noted, 'Due to being a technology-based startup, it inevitably has significant medium- and long-term funding needs, but it has attempted a series of capital increases and corporate bond issuances without yet proving business results.'
Some voices in the industry argue that INNOSPACE must transparently disclose its technological achievements and business schedules. They emphasize that clearly communicating the commercial launch schedule and revenue generation plans is essential for convincing investors during future funding rounds.
Meanwhile, INNOSPACE reported 240 million won in revenue and 12.2 billion won in operating losses for the first quarter. The company stated, 'It is true that we pursued new funding,' adding, 'We are reviewing various financial alternatives in line with market conditions and business strategies.'